This photo taken on Oct. 31, 2023, shows a light green license plate for corporate cars displayed during a public hearing held at the Korea Automobile Manufacturers Association in Seocho, southern Seoul. (Image courtesy of Yonhap)
SEOUL, Nov. 2 (Korea Bizwire) — South Korea will have newly registered expensive company-owned cars carry new license plates from 2024 to prevent private use of them by company officials for tax benefits and cost reductions, the transport ministry said Thursday.
Starting Jan. 1, vehicles bought by companies for official purposes with corporate tax cuts and worth more than 80 million won (US$59,000) are obliged to carry light green license plates, the Ministry of Land, Infrastructure and Transport said in a statement.
The new vehicle registration law is not retroactive for existing corporate cars.
Previously, the government introduced a sky blue license plate for newly registered all-electric and hydrogen fuel-cell electric vehicles purchased by customers starting June 9, 2017. And the system was not retroactive either.
Companies used to buy large-sized, gasoline-powered flagship vehicles, including super cars, for their official purposes.
In recent years, they have increasingly purchased pure electric, hydrogen-powered and other fuel-efficient hybrid vehicles to take advantage of tax benefits.
Many of those eco-friendly corporate cars are priced at more than 80 million won. Gasoline-powered corporate cars with engines over 2.0 liters usually carry price tags worth over 80 million won, the ministry said.
(Yonhap)
